grace period

noun

: a period of time beyond a due date during which a financial obligation may be met without penalty or cancellation

Examples of grace period in a Sentence

The terms of the loan allow for a ten-day grace period.

Recent Examples on the Web

Brian Wilson got a grace period and was making great music well into the 2010s; Sly Stone tried but never entirely rebounded. —Craig Jenkins, Vulture, 12 June 2025

The extension applies to U.S. citizens and resident migrants outside the country, including dual citizens, offering them a two-month grace period after the regular April 15 deadline. —Aliss Higham, MSNBC Newsweek, 10 June 2025

The deal saw the two sides dial back during the 90-day grace period mutual tariffs that had soared to well over 100%. —Simone McCarthy, CNN Money, 1 June 2025

With that grace period having ended on May 5, newly delinquent student borrowers' credit scores are also being dinged, as their failures to pay back their debts are reported to credit bureaus. —Anne Marie D. Lee, CBS News, 29 May 2025

Word History

First Known Use

1907, in the meaning defined above

Rhymes for grace period

• myriad
• photoperiod

Legal Definition

grace period

noun

grace pe·​ri·​od

: a period of time beyond a scheduled date during which a required action (as payment of an obligation) may be taken without incurring the ordinarily resulting adverse consequences (as penalty or cancellation): as

a

: a period of 30 days or one month during which premiums on insurance policies may be paid without penalty

b

: a period of ten days during which certain security interests (as those in fixtures) must be perfected in order to have priority over conflicting security interests under Article 9 of the Uniform Commercial Code

called also days of grace